XRP Forms Third Weekly Hammer Candle: Could a 2,000% Surge Be in the Cards Again?

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Renowned market analyst Steph shed light on a potentially bullish development for XRP, despite the broader cryptocurrency market grappling with significant corrections. As Bitcoin (BTC) dipped below the critical $100,000 mark, triggering a sell-off across the market, XRP experienced a sharp drop to $1.76 on February 3, 2025. However, the cryptocurrency quickly rebounded, regaining levels above $2, leaving many analysts intrigued by the market dynamics.

This is only the third time in #XRP’s history we’ve seen this weekly hammer candle.

The last two led to 2,000%+ moves. pic.twitter.com/26biG4lRFl
— STEPH IS CRYPTO (@Steph_iscrypto) February 4, 2025

This sudden crash and recovery led to the formation of a hammer candlestick on XRP’s weekly chart—an important technical signal indicating potential trend reversals. A hammer candle, characterized by a long lower shadow and a small body, suggests that buyers have regained control following a substantial price drop. This structure often signals the end of a downtrend and a potential upward move, making it a key indicator for traders.

Steph’s analysis pointed out that this is only the third time in XRP’s history that such a hammer formation has appeared on the weekly chart. Historically, similar patterns have been followed by significant price rallies. The first hammer appeared in late 2013, after which XRP saw a massive 2,128% surge. The second occurrence, in January 2017, was followed by a steep decline, but once recovery took hold, XRP skyrocketed by a staggering 110,085% to reach its all-time high above $3 in early 2018.

Given the historical precedents, Steph suggested that XRP’s current hammer candlestick could trigger a significant rally, possibly even surpassing previous gains. While a 2,000% rally might be unlikely in the current market environment, a more conservative estimate of 500% would push XRP to a new all-time high of $15—an exciting prospect for holders and traders alike.

Also Read: XRP Faces Steep Decline to $2.50 as Binance Traders Bet 2.8x on Long Positions – $22.68M in Liquidations Loom

As the crypto market continues to face volatility, the formation of this weekly hammer could provide hope for a potential resurgence in XRP’s price action.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.